1.4. Managing People Flashcards
Soft HRM
Suggest a business should treat its employees as Strategic Assets
- Most Important Asset A Business Has
- Employees Should Be Develoed Over Time
(Democratic Leadership) - Cost Of Delegation + Decentralisation Structures
↑ Employee Motivation / Productivity
ISSUES:
1. Training = Costs ( … Competitive Disadvantage ) ?
2. Issues with delegation / Decentralisation
Hard HRM
Suggest a business should treat its employees as Tactical Resources
- Viewed in same manner as Components or Raw Materials
- Better able to focus on Efficiency ( … Competitive Advantage )
- Associated with Authoritarian + Centralised Structures
ISSUES:
1. Absenteeism / Turnover Issues ?
2. Easy to Replace / Find Staff ?
What is multi-skilling
PROS / CONS
Multi-skilling is the process of training workers to fulfil multiple job roles within a business.
PROS:
1. reduces labour costs and increase productivity
2. It can help to improve patient outcomes in healthcare industries as workers have a broader range of skills
CONS:
1. May require significant investment in training and development
2. May not be appropriate for all job roles, especially those that require a high level of expertise
Outsourcing
PROS / CONS
Hiring external companies or individuals to handle tasks or services instead of doing them in-house.
e.g. Apple outsource much of its manufacturing to Foxconn in China as it produces products at a lower cost and maintain competitive pricing
PROS:
1. This may allow businesses to access specialised skills that may not be available in-house
2. May reduce labour costs
CONS:
1. This may lead to a loss of control over quality and delivery, especially if the outsourcing partner is based in another country
2. This may create ethical concerns, especially if the partner is based in a country with lower labour standards or human rights abuses
Dismissal & Redundancy
Definition / Difference
Dismissal (firing or sacking) is the termination of an employee due to their misconduct (e.g. violating company policy) or poor performance
- The employer may choose to dismiss them immediately
(without notice or compensation) or provide a notice period which they can work out
Employees are made redundant when the job is no longer available and the business reduces the size of its workforce
- The termination is not due to any fault of the employee
- The employer must follow certain legal procedures, including providing notice and paying redundancy compensation
individual approach & collective agreement
Individual Approach:
- Focuses on the relationship between an employee and their employer
- Assumes that each employee is unique and has their own goals, motivations, and interests
- The employer has the power to hire, fire, and set the terms and conditions of employment
Collective Agreement:
-A process where by a group of employees (represented by a trade union) negotiate with their employer for better wages, working conditions and benefits
- Employees have more bargaining power when they negotiate collectively rather than as individuals
- The employment relationship is seen as a power struggle between two parties with conflicting interests as employer wants to maximise profit by keeping labout cost low but employees want higher wages
The Recruitment & Selection Process
- Define = The role including the job description and job specification
- Source = Identify if applicants will be recruited internally or externally
- Advertise = Use the most cost effective method to reach potentual candidates
- Receive Applications = Collate a CV’s and and cover letters. make a shortlist to interview
- Selection = may include interviews or assessment tasks
Costs Associated with Recruitment, Training &
Selection
Recruitment Cost:
- expenses incurred in the process of hiring new employees by advertising, recruiting, interviewing, and screening candidates
- High labour turnover rates can significantly increase these costs
- When employees leave the business they have to spend money and time recruiting and training new employees to fill the vacant positions
Training Cost:
- Training costs refer to the expenses incurred in the process of providing training
- If the training is not effective, employees may require additional training or take longer to learn new skills, which can increase the cost of training
Selection Cost:
- Selection costs refer to the expenses incurred in the process of selecting candidates e.g. background checks and visa costs
- High labour turnover rates can increase selection costs as the
business has to spend more regularly
Induction Training
PROS / CONS
Training to new employees to enable them to perform their jobs
Induction Training Items ➙ Presentation / Doccument explaining everything such as health and safety procedures / responsibility / business ( Aim / Objective )
PROS:
- Will make new employee productive sooner
CONS:
- Takes time and costs ➙ Labour Cost
On The Job Training
A type of training that takes place while employees are working in their job roles.
It allows employees to learn new skills and knowledge from colleagues while performing their job duties.
PROS:
- Can be cost effective as it takes place during working hours
- Training is often more practical and relevant to the employee’s jobs
CONS:
- Employees may make mistakes while learning, which can impact productivity and quality
- Can be disruptive to the workplace as it requires the trainer to devote time to training the employee
- May not be effective in all cases, leading to employee dissatisfaction and higher turnover rates
Off The Job Training
A type of training that takes place outside of the workplace
It can be in the form of workshops, seminars, conferences, or online courses e.g. Teachers can attend exam board training days at which they learn how to better teach the syllabus
PROS:
- Employees learn new skills and knowledge outside of the workplace, which can bring fresh ideas and perspectives to the workplace
- Can be cost effective if training is provided online or through webinars
- Training can be tailored to the employee’s specific needs and interests
CONS:
- Can be expensive to organise, especially if travel and accommodation are required
- Employees may miss work while attending training, which can impact productivity
- The training may not be directly applicable to the employee’s job role or the needs of the firm
Centralised and decentralised structures
In a centralised structure, decision-making authority is concentrated at the top of the organisation, with senior management making most of the decisions
In a decentralised structure, decision-making authority is distributed throughout the organisation, with lower-level employees having more decision-making power
Decentralisation can promote flexibility and innovation, while centralisation can promote consistency and control
Hierarchy
Chain of command
Span of control
Hierarchy - A hierarchy refers to the levels of authority within an organisation
Chain of command - The chain of command is the formal line of authority that fows down from the top management to
lower-level employees
Span of control - Span of control refers to the number of employees that a manager or supervisor can effectively manage
Tall Organisational Structures
PROS / CONS
Centralised (Decision-making authority is concentrated at the top levels of the organization.)
Tall organisational structures - Tall structures are characterised by multiple levels of management and a more centralised decision
making process.
A long chain of command.
Common in large organisations with complex operations,
e.g. - government agencies and universities
PROS:
- Provides a clear hierarchy of authority
- Promotes specialisation and expertise within each department or function
- Offers opportunities for career advancement and promotion within the organisation
- All of the above increases efficiency and motivation
CONS:
- Can create communication barriers
- Decision-making can be slow as information must pass through multiple layers of management
- This can lead to bureaucracy and excessive levels of management
- All of the above reduce efficiency and motivation
Flat Organisational Structures
PROS / CONS
Decentralised (An organizational hierarchy with many levels of management.)
Flat structures are characterised by fewer levels of management and a more decentralised decision making process.
A short chain of command.
Common in small organisations or start ups
PROS:
- Open communication
- Decision-making can be faster and more efficient
- Encourages creativity and innovation as employees have more autonomy and flexibility
-All of the above increases efficiency and motivation
CONS:
- This can lead to role ambiguity and a lack of a clear hierarchy
- May not provide clear opportunities for career advancement or promotion
- This may require employees to take on multiple roles and responsibilities, leading to burnout and overwhelm
-All of the above reduce efficiency and motivation
Matrix Organisational Structures
PROS / CONS
Organisational structure where employees report to Fuctional Manager and Project Manager
Matrix structures are usually built around specific products or projects
They combine the functional areas of a business (HR, finance, marketing, sales) with a specialist team that operates inside the business
PROS:
- Promotes cross-functional collaboration and communication
- Allows for specialisation and expertise within each functional area
- Enables efficient allocation of resources and coordination of multiple projects
- All of the above increases efficiency and motivation
CONS:
- This can lead to conflicts over priorities and resources
- This can create confusion over roles and responsibilities, particularly when multiple managers are involved
- Requires a high degree of communication and coordination, which can be challenging
- All ofthe above reduce efficiency and motivation
Motivation in Theory & Practice
Motivation refers to the inner desire or willingness that propels a person to take action and achieve a specific goal or outcome
Motivation can be intrinsic, coming from within a person (values, beliefs etc)
Motivation can be extrinsic, coming from external factors (rewards or punishments)
Motivation Theories: Taylor’s Scientic Management
- Monitor / Observe Workers
- Develop the best way to completing job
- Managers define clear procedures for employees
- Managers provide training based on efficiency
- Calculate realistic target output per day 3+4
Less = More Training
more = Bonis
Taylors view = money =motivation
Pay ‘ piece rate ‘ per output
ISSUES:
- Too crude or just Finance
- Potentual for exploitation
Motivation Theories: Mayo’s Human Relations Theory
PROS / CONS
Mayo suggests that the key to improving productivity and job satisfaction lies in understanding and improving the relationships between workers, supervisors, and management
PROS:
- Improved job satisfaction
- Better communication & Increased productivity as workers feel valued and supported
- Stronger teams as there is a sense of community and team spirit
CONS:
- Time-consuming as building positive relationships requires time
- Potential for conflict as attempts to build stronger relationships can also lead to conflicts and disagreements
Motivation Theories: Maslow’s Hierarchy of Needs
Individual workers have similar needs. motivated by the next need.
- Physiological Needs:
Businesses can provide necessities for their employees
E.g. comfortable work environment, access to clean water and food, and adequate rest breaks - Safety Needs:
Businesses can provide job security,fair pay, benets, and safe working conditions for their employees - Love and Belonging Needs:
Businesses can encourage teamwork and generate a sense of community within the workplace - Esteem Needs:
Businesses can provide recognition for employees’ accomplishments and provide a positive work culture that values individual contributions - Self-Actualisation Needs:
Businesses can help employees achieve this need by offering opportunities for employees to pursue their passions and interests
ISSUES:
- had to judge where worker is
- Is order correct
Herzberg Two Factor Theory:
( extrinsic ) Hygiene
( intrinsic ) Motivators
Herzberg’s theory suggests that there are two types off factors that affect employee motivation and job satisfaction
( extrinsic ) Hygiene factors are elements that do not necessarily lead to job satisfaction, but their absence can cause dissatisfaction, which decreases motivation, e.g poor teamwork in the workplace
( intrinsic ) Motivators are elements that lead to job satisfaction and motivation, e.g. increased responsibility
Piece Work for Motivation
PROS / CONS
Paid depending on how many units you produced
PROS:
- ↑ Productivity as Monetary Incentive
CONS:
- Encourage shortcuts = ↓ Quality … Depends on Quality Control
Commission for Motivation
PROS / CONS
Employees earn a percentage of the sales they make, in addition to or instead of a basic salary.
PROS:
- ↑ Productivity as Monetary Incentive
CONS:
- Ethics → Aggressive Sales
- Neglet non sales aspect of role
Profit Sharing for Motivation
PROS / CONS
When staff are given a share of annual profits → type of Monetary Reward
PROS:
- Incentivies staff to consider their personal contribution
- Encourages staff to try and cut costs = ↑ Profits
CONS:
- Share is often small so ↓ Incentive
- If ↑ profit share amount = ↓ Dividends
Non-Financial Methods ( Of Motivation )
Job Rotation:
Involves moving staff between different roles in the business
Exposes staff to new challenges and experiences, which can increase
motivation, understanding and skill
Job Enrichment:
Involves adding more challenging or meaningful tasks to a job
Staff feel more motivated and engaged leading to improved productivity
Autonomy: When business gives employees more independence in their decison making
Delegation
PROS / CONS
When managers give authority to subordinate employees to perform tasks or make specific decisions
PROS:
- Subordinates may be empowered by the new authority and responsibility which ↑ Motivation ↑ Productivity ↑ Efficiency
- Fosters Culture of internal recruitment
- Managers able to fully focus on more complex tasks or decisions
CONS:
- Subordinates may be demotivated by increased work load
= ↓ Productivity
- If ↓ Motivation , ↑ Risk employees leave business
Role Of Managers
- Set Objectives
- Analysing ⮕ Data ⮕ Departments
- Leading ⮕ Management styles : A, P, D, CF*
( Authoritarian, Paternalistic, Democratic & Laissez-Faire ) - Making Decisions ⮕ Scientific / Intuiotion
- Reviewing ⮕ Decisions made Good or Bad
Leadership & Management
Vision vs Execution
Influence vs Control
People vs Processes
Long-term vs Short-term
Creativity vs Efficiency
Vision vs Execution:
Leadership focuses on creating a vision, setting direction, and inspiring others to follow
Management focuses on executing plans, organising resources and ensuring tasks are completed on time
Influence vs Control:
Leadership focuses on influencing others to achieve a common goal by inspiring and motivating
Management focuses on controlling resources and processes to ensure that objectives are met
People vs Processes:
Leadership focuses on people, their needs, and their motivation
Management focuses on processes, structures and systems
Long-term vs Short-term:
Leadership focuses on the long-term vision and strategy
Management focuses on short-term goals and targets
Creativity vs Efficiency
Leadership encourages creativity and innovation
Management focuses more on efficiency and productivity
Different Types of Leadership Styles
Authoritarian:
- Managers make ALL decisions
- Communication Top 🠮 Down
✅ Business Crisis
✅ Unskilled / New Workers
❌ Demotivating
❌ Low Staff Retention
Paternalistic:
- Leader takes on a parental role making decisions in the best interest of their staff
- Managers consult employees before making decisions
- Consult 🠮 Explain 🠮 Persuade
✅ Employees feel more involved ∴ ↑ Motivation
❌ In Long Term … Some Issues
Democratic:
- Managers gives employees greater involvement in decision making
( Delegation )
✅ Motivation In Staff
✅ Frees up manager for important decisions
❌ Slows Decision making process
❌ Are employees capable
Laissez-Faire:
- Managers have NO imput in decision making.
- ∴ Full Delegation
✅ competent + Highly Skilled
✅ Aligned incentives - Profit Sharing?
❌ Ineffective if just a way for manager to Avoid Responsibility
